If Moe’s has four workers, and Moe wants to improve his marginal product of labor, he should ______.
a. find higher quality workers
b. reduce the number of workers
c. pay his staff less
d. charge more for his bagels
b. reduce the number of workers
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At a peak in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) greater than B) equal to C) less than D) falling below E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion.
If policymakers in an open economy want to increase the wealth of their citizens, should they seek to increase saving, or to increase investment? Explain
What will be an ideal response?
Because of its divisibility, portability, and homogeneity,
a. gold has been a perfect medium of exchange and measure of value b. gold has never been considered an adequate medium of exchange, which is why we switched to fiat money c. wampum is still used as a medium of exchange d. M3 has been considered the perfect currency e. mercury has been a perfect medium of exchange and measure of value
Explain how real GDP differs from nominal GDP